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The Medicare Part D Mess

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b2ap3_thumbnail_ccb4e23c8aa216f1e96d31ab209c036b_L.jpgLong term care pharmacies are dealing with a new billing problem – the change in Medicare Part D that affects payments for hospice patients' medications. A large percentage of hospice patients live in health care facilities rather than at home or in an in-patient hospice unit. This living condition complicates the issues hospices are dealing with surrounding the change in medication reimbursement because these patients do not receive their medication from “hospice pharmacies.” The vast majority of hospice patients who reside in nursing homes, assisted living centers, residential care or other long term care settings receive their medications from a long term care pharmacy which has a contractual relationship with the center. This situation exists for practical as well as regulatory reasons. Long term care centers, for the most part, must receive medications for their residents in unit dose or unit of use packaging. Furthermore, regulations for long term care centers dictate that all medication must be available for administration in a timely manner. Finally, long term care centers in most states are not accustomed to dealing with multiple pharmacies in procuring medications for their residents and insist that hospice patients receive their medications from the center’s contracted provider. These and other reasons limit the hospice’s ability to have the medications delivered by mail by a hospice pharmacy or sent in conventional packaging from a retail pharmacy.

Historically, the hospice has contracted with a specialized hospice pharmacy and/or PBM (pharmacy benefit manager). If the hospice patient is in a private home, this pharmacy would either over-night the medications directly to the hospice patient's residence or have them sent from a local pharmacy and billed to the hospice pharmacy through their PBM. The hospice pharmacy, in turn, bills the hospice. If the patient is in a long term care center, the hospice pharmacy or the hospice contacts the long term care pharmacy and identifies the medications for which the hospice will now be financially responsible. The long term care pharmacy would continue to bill all other medications on the patient’s profile (which could be a significant number) to the patient’s primary payor source, which is almost always Medicare Part D.

Starting May 1, the Part D sponsors will stop paying for all medications the hospice patient is utilizing (unless it can be demonstrated that the drug is unrelated to the hospice diagnosis), leaving the long term care pharmacy, facility and patient with a financial issue. A few Part D Plans have already begun to reject the claims. Perhaps these Part D Plans perceive this to be a minor issue, affecting only a small percentage of their members. Indeed, for many of these plans, the total number of all members who are long term care patients is a small percentage of their business. As a result, they may have not yet adequately trained their customer service staff to be aware of this change or how properly to react when a hospice or hospice patient’s responsible party or physician calls to gain an exemption from the regulation. Regardless of how the Part D plans are reacting to these charges, the pharmacy is obligated by their contractual relationship with the long term care center to dispense the medication and must therefore reach out to the hospice, long term care center and/or patient’s family in an attempt to find someone who will accept financial responsibility. To date the response to pharmacy’s inquiries has been underwhelming. In too many instances, each party involved in the process instructs the pharmacy to bill someone else. Most of these patients are actually dually eligible Medicare-Medicaid patients. There simply is not adequate money from any source to pay for these medications. This situation will get much worse once all plans begin rejecting claims in May.

Hospices have been slow to react to this situation, not fully understanding the relationship between their own pharmacy or PBM, the long term care center’s pharmacy and the nursing home or assisted living center. Many hospices currently do not have a business or financial agreement with the long term care pharmacy and have been resistant when receiving calls asking if they will accept responsibility. Some have been advising the pharmacy to bill the long term care center. This is not only impractical (especially in the case of a Medicaid resident), but also against the intent of CMS when they issued this ruling. CMS felt that, once a patient chose hospice, most medications would be discontinued as no longer necessary. This may be true for medications such as those given to lower cholesterol, but would anyone advocate discontinuing a medication for hypertension? Anyone who suffers from this condition and experiences the headaches that ensue when the medication is omitted would never deny it to someone who was admitted to hospice for cancer.Less severe, but equally important when considering patient comfort, would be medications such as omeprazole administered for GERD. Would we deny a dying patient the comfort received from this medication due to payment issues, even if not strictly related to the hospice diagnosis? It is true that there is a mechanism for getting these covered under Part D, and hospice must take the responsibility to determine if drugs are necessary or unnecessary and likewise get these necessary drugs covered.

Hospice organizations would be well-advised to take the lead and deal with this new state of affairs proactively. This is true for all hospice patients, but the complication in long term care, where a third party (the long term care center) is obligated to administer the medication until it is discontinued, and is ordering the medication from a pharmacy not strictly contracted with the hospice, makes the situation more complicated. A thoughtful, well-planned response to this situation will benefit all parties involved, including the hospice itself. Ignoring the issue by not communicating with the pharmacy could lead to the pharmacy not dispensing the medication and to the long term care center possibly being cited by state agencies for lack of medication availability. Hospices attempting to avoid the issue by telling the pharmacy to bill the center or the patient will most likely only cause problems for the long term care centers with whom they work in order to provide care. These problems could easily become serious enough to cause cancellation of hospice-facility contracts. Instead, hospices should contact every pharmacy that contracts with the long term care facilities where the hospice normally has patients. The patient’s Part D plan information should be readily available on the patient’s chart, If not, the hospice should set up procedures with the pharmacy to receive information on all current and future patients' Part D plans to better facilitate calls to request prior authorizations for unrelated medications. Currently, every potential patient’s medications are routinely reviewed by the hospice nurse as part of the hospice patient evaluation process. Going forward, the hospice nurse should also find out how many day’s supply of medications the patient has left on hand at the center. Normally, long term care pharmacies dispense a thirty day’s supply of drugs, so there is a good possibility that the patient may have enough medication on hand to last until the hospice, patient’s responsible party and physician can work through the issue of financial responsibility for the medications. If the patient has a supply of five days or less on hand, the hospice nurse should suggest that the center reorder a limited supply of the medication while the patient is still covered by traditional Medicare Part D. This should be used as a stop gap measure and not a routine practice that could be viewed as circumventing the intentions of the regulation change.

The hospice needs to take the lead in this process, determining if a medication is indeed related to the patient's terminal diagnosis (and, with all the comorbidities that need to be documented, the number of unrelated medications is decreasing), working with physicians to discontinue truly unnecessary drugs, educating patients, responsible parties and physicians on the prior authorization process, ensuring that there is follow through in getting necessary but unrelated medications covered and partnering with the long term care pharmacy on communicating whether or not any medications can and should be billed privately on any particular patient.

But hospices cannot be held responsible for handling this issue alone. In addition to the hospice, it is incumbent upon all parties involved (prescribing physicians, LTC pharmacy providers and nursing homes/assisted living centers etc.) to become educated and proactive participants in their prescribing habits, admission procedures and communications with one another.  A non-collaborative approach will ultimately result in failure. Physicians, whether affiliated or unaffiliated with the hospice, drive the prescribing process and now more than ever, need to understand the importance of prospectively limiting the prescribing of medications unrelated to the terminal condition or related but medically unnecessary now that the patient has chosen hospice. If not already in place, LTC pharmacies should pre-establish non-covered drug policies with each nursing facility that they service to ensure that there are no delays or interruptions in therapy while the hospice prior authorization process is under review.  Nursing homes and assisted living communities need to educate their staff to contact the hospice immediately if the attending physician orders a medication for a hospice patient as a result of a non-hospice diagnosis related change in condition.

Even without this newly-initiated payment confusion, hospice census in long term care centers has been under siege from government entities that have been resistant to understanding the value of hospice care being provided in long term care. Hospices must take care to avoid complicating the delivery of care by causing more angst for the long term care center (in dealing with medication billing issues and unavailability) which will only further reduce the incidence of this necessary service being utilized in the long-term care setting.

With experience in leading both Long Term Care Pharmacies and Hospices, Veltri Healthcare Solutions is eminently qualified to assist both types of organizations in achieving sustainable responses to these revenue stream pressures. For more information, please contact us at

Update:  For more on the Medicare Part D problem, see our post Resolved? - The Medicare Part D Mess

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  • Guest
    Mary Ann Villanti Thursday, 24 April 2014

    As always Sam, you make excellent points, with helpful solutions.
    Mary Ann Villanti
    CareGivers America

  • Guest
    Pam Barrett, ACSW, FACHE Thursday, 24 April 2014

    Well written article! I fear that the increasing regulation, complexity and cost will create further barriers to easy access to hospice care- especially in LTC. Excellent point that co- morbidities used to justify terminal illness may well be "related" and thus the associated medications are to be covered. Unfortunately, the Hospice Medicare Benefit has not kept pace with changing treatment protocols and accepted "palliative" interventions and their costs! The result-- VERY late referrals and even shorter lengths of stay under hospice care. Perhaps that's simply how medical care has advanced. Isn't that what those on the receiving end are telling us they want?! Quality of life for as long as possible, before accepting the Inevitable. . I used to think that our western culture would shift and be more accepting of the reality of death (vs. it being unAmerican to die). Not so, but I maintain my optimism that our culture is slowly shifting- in great measure due to the efforts of hospice providers over the past 30 years so that quality palliative care WILL become the standard of care, (incorporated into treatment plans from diagnosis to cure, remission and/ or death). The tricky part is this- Are we collectively willing to pay for this, along with "doing everything" for Mom. What really matters most, is that patients are fully "informed" and get to make decisions about treatment at all stages of their journey. They must have "accurate" information in order to weigh benefit and burden, always based on THEIR personal desires and goals. We can do better. I hope that we will.

  • Guest
    oral vaccine Tuesday, 24 May 2022

    However, hospices can't be considered answerable for taking care of this issue alone. Notwithstanding the hospice, it is officeholder upon all gatherings included (endorsing doctors, LTC drug store suppliers and nursing homes/helped residing focuses and so forth) to become taught and proactive members in their recommending propensities, affirmation strategies and correspondences with each other. A non-cooperative methodology will eventually bring about disappointment. oral vaccine

  • Guest
    gold hand bracelet Friday, 03 June 2022

    Beginning May 1, the Part D patrons will quit paying for all prescriptions the hospice patient is using (except if it tends to be shown that the medication is inconsequential to the hospice finding), leaving the drawn out care drug store, office and patient with a monetary issue. A couple of Part D Plans have proactively started to dismiss the cases. Maybe these Part D Plans see this to be a minor issue, influencing just a little level of their individuals. To be sure, for the overwhelming majority of these plans, the complete number of all individuals who are long haul care patients is a little level of their business. Thus, they might have not yet satisfactorily prepared their client support staff to know about this change or how appropriately to respond when a hospice or hospice patient's party in question or doctor calls to acquire an exclusion from the guideline. Notwithstanding the way in which the Part D plans are responding to these charges, the drug store is committed by their authoritative relationship with the drawn out care community to administer the prescription and must in this way contact the hospice, long haul care focus as well as quiet's family trying to find somebody who will acknowledge monetary obligation. To date the reaction to drug store's requests has been disappointing. In an excessive number of examples, each party engaged with the cycle trains the drug store to charge another person. A large portion of these patients are really dually qualified Medicare-Medicaid patients. There basically isn't satisfactory cash from any source to pay for these meds. This present circumstance will deteriorate once all plans start dismissing claims in May.

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